Which of these statements about inventory management is BEST?
A) Spot stock warehouses are more useful with less inventory in the system.
B) A system using air transportation experiences higher costs due to higher levels of inventory.
C) Cross-docking facilities don't need to match incoming and outgoing demand since they typically retain much of their inventory for a week or longer.
D) A system using water and rail transportation tends to have higher levels of inventory.

Question

Quizplus · Accepted Answer

Water and rail transportation are slower, leading to longer transit times and thus higher levels of inventory to ensure availability.

Which of These Statements About Inventory Management Is BEST